12 August 2016

The Street shook off some fairly lousy economic results from this morning, and managed to turn the losses to largely unchanged to a little green by the afternoon, when Asia and Europe had gone home to bed.

Stocks are still struggling here, trying to find a rationale for moving even higher than they are now.

It's not clear that they will find that, but with the Fed et al providing plenty of liquidity and outright purchases in come cases, and with the regulators turning a blind eye to the 'cup of courage' that the algos are dishing out to the banner headline indices on an almost daily basis, there is no telling where the equity markets may go.

In the end it will turn out badly, as it has done so twice now since the turn of the century. But that is a concern for another day, and for other people to clean up once the bonuses are banked, mostly offshore.

Le Propriétaire

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Need Little - Want Less - Love More

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

"In the Incarnation the whole human race recovers the dignity of the image of God. Thereafter, any attack even on the least of men is an attack on Christ, who took on the form of man, and in his own Person restored the image of God in all. Through our relationship with the Incarnation, we recover our true humanity, and at the same time are delivered from that perverse individualism which is the consequence of sin, and recover our solidarity with all mankind." Dietrich Bonhoeffer

"A credibility trap is when the managerial functions of a society have been sufficiently compromised by corruption so that the leadership cannot reform, or even honestly address, the problems of that system without implicating a broad swath of the powerful, including themselves.

The moneyed interests and their aspirants tolerate the corruption because they have profited from it, and would like to continue to do so. Discipline is maintained by various forms of soft financial rewards and career and social coercion."

These are personal observations about the economy and the markets. In providing information, I hope this allows you to make your own decisions in an informed manner, even if it is from learning by my mistakes, which are many. As a standing policy I never provide individual investment advice to anyone. I will only occasionally disclose my personal positions for purposes of illustration. Understand that my own circumstances could differ greatly from your own, and therefore what is suitable for me may not be suitable for you. My comments are intended to be reflection on general macro financial and economic events and trends.